The Strategic Context of Human Resource Management

This report explores the strategic context of human resource management (HRM) and its impact on organizational success. It discusses the external analysis of Tesco, including social, technological, economic, environmental, political, legal, and ethical factors. It also examines the internal analysis of HRM using the Ulrich model, which focuses on strategic partnership, change agent, administrative expert, and employee champion roles. Additionally, the report evaluates the HR functions of Tesco, including training, recruitment, motivation, compliance with laws and regulations, and decision-making. The approach used by Tesco, Porter's five forces, is also discussed. Overall, this report provides insights into the importance of strategic HRM in achieving organizational goals.

The Strategic Context
of Human Resource
Management

Contents
INTRODUCTION...........................................................................................................................2
MAIN BODY..................................................................................................................................2
External analysis of Tesco...........................................................................................................2
Internal analysis of HRM.............................................................................................................3
Evaluation of HR functions.........................................................................................................4
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6
APPENDIX......................................................................................................................................7
1

INTRODUCTION
Strategic human resource management is useful in doing proper planning related to future
tasks and also to solve the issues that is been faced by organisation. This management is really
useful for the organisation to achieve their set target and mission. It contributes in achieving long
term business goals and higher productivity. Present report will lay emphasis on Tesco. It is a
large super market chain which is been established in United Kingdom. Present report will lay
emphasis on external analysis. It will also focus on internal HR analysis. Report will also do the
evaluation of HR approaches.
MAIN BODY
External analysis of Tesco
There are various external factors that can affect the working of organisation. This can be
thoroughly explained by making use of STEEPLE analysis. It includes the following:
Social factor: Tesco needs to make sure that they are providing products according to the
needs and demands of consumers. They are also taking care of their belief and values so that they
can be able to retain consumers. Healthy and organic products need to be provided by Tesco.
Technological factor: During the time of novel corona virus pandemic it is really
necessary that company makes use of high-tech technology. Like for example they should adopt
online payment system so that consumers of Tesco need not to wait in a cue. This will also be
best safety measure for consumer and also, they will feel more comfortable by making use of
this. They should also make use of new ERP planning software for management of supply chain
and ware houses during the time of novel corona virus crisis.
Economic factor: In this Tesco needs to be engaged in being aware about the any
changes in policies like tax rates. If the tax rate and labour rate increases then company can face
problem. This can affect growth of organisation. Due to decline in disposable and house hold
income Tesco has diverted their mind on advertising.
Environmental factor: In this Tesco is been involved in following the CSR policies so
that their brand value can be increased and they will be able to grow (Delery and Roumpi, 2017).
Political factor: The retail organisation is highly affected by the political factors as so
many countries have now allowed free trades, so this has assisted the company in expanding
their market share in different markets. This has also assisted Tesco in achieving their set target
as well as mission. It has also been analysed that BREXIT has also laid significant impact on
2

working of company. They have also faced loss because of this. Tesco has also created
employment opportunities during the time of financial stability. Thus, assisting them in attracting
more consumers.
Legal factor: In this Tesco needs to make sure that all rules and regulations are being
followed by them. They should be engaged in following the health and safety act and also the
data protection act. Company must make sure that employees are working in safe environment.
Ethical factor: All tasks of Tesco needs to be conducted by following the ethical code of
conduct.
Internal analysis of HRM
The internal analysis of HRM functions can be done by making use of Ulrich model. This
is basically been used in order to properly organise the human resource functions. This
framework is mainly useful for large scale organisations (Zehir and et.al., 2016). So, Tesco can
probably make use of model. There are four roles that needs to be performed by HR. It includes
the following:
 Strategic partner: In this the strategy and initiatives which is been adopted by Tesco’s
HR needs to be aligned with the business strategy. They need to make sure that
company’s goal and their objectives are similar. Only it can assist an organisation in
growing and achieving objectives.
 Change agent: Human resource manager needs to act as change agent of company. In
this HR needs to be involved in giving their full support when Tesco is going through any
type of change. They should give their full support for change activities of company.
 Administrative expert: In this the prime role of HR is to make sure that organisation is
been delivering quality services and no issues are been faced by employees so it can
make them more productive. HR of Tesco needs to follow this and implement strategies
related to giving better quality services (Cooke, Xiao and Chen, 2020).
 Employee champion: HR must make sure that all employees of Tesco are been engaged
in communicating with them and they have also been engaged in sharing their issues with
them. This will assist company in overcoming the problems that has been faced by them.
Ulrich HR Model is in actuality, a blueprint meant to keep HR functions. HR needs to make sure
according to this model that all strategies which has been implemented by them are according to
the needs and demands of their employees. They should also be involved in supporting the
3

change which has been imposed by the company. This will assist Tesco in growing and also they
will be able to achieve their set target and mission through this. It has also been analysed that HR
must involved in taking feedback from employees so that they can also be involved in checking
gaps in their services and also effectiveness of the policies which has been implemented by them.
If this is not been done in Tesco then they lose their employees and also the employee turnover
will be increased because of it.
Evaluation of HR functions
HR functions are really useful in managing and coordinating tasks and also it is been
really useful in planning for the future. The HR department of Tesco is been involved in making
sure that adequate training is been provided to individuals, so that the goals and objectives of
company can be achieved and also the firm will be able to grow because of it. HR department is
also been involved in doing the hiring and recruitment. They have been engaged in making sure
that highly talented and efficient staff is been appointed by them. This will assist them in making
sure that targets that has been set up by Tesco is been achieved. It has also been analysed that HR
is also making sure that workers in organisation are motivated so that it becomes easier for them
to achieve target. For this the HR manager is been engaged in appraising them on basis of their
skills and abilities. They are also making sure that adequate job training is been given to
employees so that they stay motivated and also this increases their job satisfaction. HR also
perform functions of relying to rules and regulations. They make sure that Tesco is been
involved in following all the laws and policies that is been implemented by parliament. Tesco
make sure that workers work in a safe condition which is also hazardous free. HR also make sure
that personal data of employees are not been out and is been kept confidential (Boon and et.al.,
2018). This has assisted company in retaining trust of workers and they have also been able to
grow because of it. It has also been analysed that HR decision making is been influenced by all
these laws and rules. This has supported company in growing. It has also been evaluated that HR
is also been engaged in taking feedback from employees, so that they can know about gaps in
their services.
Evaluation of the approach: In order to gain competitive advantage, approach used by Tesco
includes Porter’s five forces. It includes the following points:
 Bargaining power of buyers: It is low because the consumers are not organised, and
also Tesco provides high quality products
4

 Bargaining power of suppliers: It is low as Tesco is renowned organisation and all
suppliers wants to work with them.
 Threat of new entrants: It is also low as it requires huge capital to open up a super
market store like Tesco
 Threat of substitute: It is high as so many other chains like Aldi are been involved in
selling same items
 Rivalry among competitors: It is high as number of branded super market stores have
been increased.
CONCLUSION
From the above study it has been summarised that various factors can affect the working
of company. It has been analysed that company needs to provide products according to needs and
demands of consumers. It has also been evaluated through Ulrich model that Hr has been acting
as change agent. They have been engaged in supporting company when change is been
implemented by them. This has assisted firm in growing and also, they have become more
productive because of it. This has also supported them in achieving the set target and mission,
which has helped in growing.
5

REFERENCES
Books and Journals
Boon, C. and et.al., 2018. Integrating strategic human capital and strategic human resource
management. The International Journal of Human Resource Management, 29(1), pp.34-
67.
Cooke, F.L., Xiao, M. and Chen, Y., 2020. Still in search of strategic human resource
management? A review and suggestions for future research with China as an
example. Human Resource Management.
Delery, J.E. and Roumpi, D., 2017. Strategic human resource management, human capital and
competitive advantage: is the field going in circles?. Human Resource Management
Journal, 27(1), pp.1-21.
McClean, E. and Collins, C.J., 2019. Expanding the concept of fit in strategic human resource
management: An examination of the relationship between human resource practices and
charismatic leadership on organizational outcomes. Human Resource
Management, 58(2), pp.187-202.
Zehir, C. and et.al., 2016. Strategic human resource management and firm performance: the
mediating role of entrepreneurial orientation. Procedia-Social and Behavioral
Sciences, 235, pp.372-381.
6

APPENDIX
Porters five forces
Bargaining power of buyers Low
Bargaining power of suppliers Low
Threat of new entrants Low
Threat of substitute High
Rivalry among competitors High
7

8